Which of the following will discourage investment?
What will be an ideal response?
High and variable rates of inflation
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When is the definition and enforcement of property rights especially difficult?
a. When many polluters harm a large group of people with the same pollutant. b. When a single polluter is harming a single person or entity. c. When land is owned by a corporation. d. When the benefits of prosecution are clear.
Which of the following are key elements to the quantity theory of money and prices?
a. Real GDP is constant; velocity is constant; increase in money supply and price level are not proportional. b. Real GDP varies; velocity varies; increase in money supply and price level are not proportional. c. Real GDP is constant; velocity is constant; increase in money supply and price level are proportional. d. Real GDP is constant; velocity varies; increase in money supply and price level are proportional.
Refer to Table 8.2. If Sherry produces three pairs of earrings, her total variable costs are A) $26.67. B) $140. C) $175. D) $225
When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use to encourage banks to lend more of these excess reserves?
A. lowering the discount rate B. making an open market sale C. lowering the reserve requirement D. lowering the interest rate it pays to banks on their reserves